Amazon has launched a software tool that lets its custom Trainium AI chips run code written in the most popular AI coding language without modification, aiming to win share from Nvidia’s GPUs. Amazon’s AI chip business had a $25 billion annual revenue run rate at the end of the second quarter, far below the $96.2 billion Nvidia booked in its fiscal 2027 second quarter alone. Nvidia’s revenue grew 106% year over year in its latest quarter, and Amazon still purchases Nvidia chips, having built up a stockpile it cannot yet power. Nvidia’s fiscal 2027 third-quarter guidance calls for $108 billion in revenue at the midpoint, or 12.3% sequential growth. The article argues Amazon’s chips are unlikely to have a meaningful effect on Nvidia’s financial results.
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Keywords
NVDAAMZNsemiconductorsartificial intelligence
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Related tickers and likely impact
NVDA
▼ Likely negativeNvidia
Relevance: medium
| Market | US stocks |
|---|---|
| Sector | Information Technology |
| Industry | Semiconductors |
| Market cap | $5.2T |
| Close on 10/23/2026 | 211.00 |
| Change that session | -0.57% |
AMZN
▲ Likely positiveAmazon
Relevance: low
| Market | US stocks |
|---|---|
| Sector | Consumer Discretionary |
| Industry | Broadline Retail |
| Market cap | $2.7T |
| Close on 10/23/2026 | 248.04 |
| Change that session | -0.93% |
Impact is scored by AI from the headline and may be wrong. It is not investment advice.
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